1. The Commissioner shall not authorize an insurer to transact insurance in this state, other than an alien insurer or a title insurer, unless it makes and thereafter continuously maintains on deposit in this state, through the Commissioner, cash or securities eligible for such deposit under the laws of this state of a fair market value not less than its minimum required capital stock (if a stock insurer) or minimum required basic surplus (if a mutual or reciprocal insurer), for the protection of the insurer’s policyholders or of its policyholders and creditors in the United States of America. The Commissioner may adopt regulations which allow the use of securities as a deposit without delivery of the securities to the Commissioner.
2. The Commissioner shall not so authorize a title insurer unless it so deposits and maintains such cash or securities of fair market value not less than its minimum required capital stock as a guaranty fund for the security and protection of the holders of, or beneficiaries under, the title insurance contracts issued by the insurer.
3. The Commissioner shall not so authorize an alien insurer unless it so makes and thereafter continuously maintains such a deposit, representing money in excess of all the insurer’s liabilities under insurance contracts in force in the United States of America, of a fair market value of not less than that required under subsection 1, as to a like foreign insurer. The deposit must be held in trust for the protection of all the insurer’s policyholders, or policyholders and creditors, in the United States of America.
4. In lieu of such a deposit made or maintained in this state, the Commissioner shall accept the certificate in proper form of the public officer having general supervision of insurers in any other state to the effect that a deposit of like quality and amount, or part thereof, by an insurer is being maintained for like purposes in public custody or control pursuant to the laws of that state, if the Commissioner is satisfied as to the like quality and amount of the deposit.
5. All such deposits in this state are subject to the applicable provisions of chapter 682B of NRS.
(Added to NRS by 1971, 1581; A 1985, 607)
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